Topic: The Biden Tax and Spend Plan & The Big Cycle Swing - page 2. (Read 197 times)

I found this article very interesting,  especially for this chart below and the idea we are starting a new cycle of more taxes to pay for those economic stimulus.

As we can see, we are starting a new cycle due to the recent changes in the world.

Usd may not be the most stable currency anymore in the years to come. Gold and now bitcoin are interesting alternatives to protect our money from those economic cycles,  which certainly can hurt a lot of our savings.

As stated above  , people want that policy, this is why Biden won. even though it might have terrible consequences for the US and the whole world.

We will see a lot of government spending in the next years..

The Big Picture: Where We Are in the Big Left-Right Cycle

What’s happening is classic and cyclical—i.e., we are seeing the left-right pendulum that has big swings back and forth between 1) more government, more redistributions of wealth and income, and less fiscal and monetary discipline, and 2) less government and fewer redistributions of wealth and income swing sharply to policies of type 1) (left) from policies of type 2) (right) for logical reasons that have timelessly and universally caused these swings. To put where we are in the cycle in perspective by looking at where we have come from over the last 100 years, that cycle has transpired as follows:

    The peak in the policies of the right occurred in 1929-32 when...
    ...in 1932 there was a big cycle swing to the left (when Roosevelt and the Democrats came in) that continued until around 1980 when it peaked and...
    ...there was the big cycle swing to the right (when Reagan and the Republicans came in), which continued until 2020 when it peaked and...
    ...there was the big cycle swing to the left (when Biden and the Democrats came in).
    By the way these presidents didn’t lead the changes as much as they were chosen by people who changed their approaches as they reacted to the consequences of the excesses of the swings.  


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Big increases in spending will be partially funded by big increases in taxes (especially on companies and the rich) and partially funded by large increases in debt that has to be sold to a) investors who already hold too much of it and are disincentivized to buy it by the low real interest rates, and b) the Fed, which probably will be incentivized to buy enough of it to prevent an interest rate rise that would be too painful to bear. The most likely effects will be higher inflation and a declining dollar relative to other assets, perhaps in tolerable degrees and perhaps in intolerable degrees (depending on how the supply/demand picture for dollar debt changes—i.e., whether there is selling of dollar debt, which would require greater debt monetization).